Circular Transformation of Industries 2025

Enabling strategies – Lifespan extension FIGURE 5 Enhance connectivity across a product’s life to monitor sold products in real time, from how they are used to the state of wear and tearC Identify how and where profit pools are likely to evolve and establish value-creation opportunities across the product life cycleEEconomic value Establish a scalable take-back process by incentivizing customer participation and establishing a network of local partners for handling logistics and repairsDIncentivize internal stakeholders to develop and implement lifespan extension solutions and showcase valid business casesIdentify customers that are most likely to value lifespan extension solutions and develop a customer engagement strategyA B Source: Circular Transformation of Industries initiative Research for this paper suggests that businesses that successfully unlock economic value through lifespan extension solutions apply some combination of the following enabling strategies: Incentivize circular actions Seek buy-in from the sales force and other internal stakeholders, given that around 45% of businesses consider internal stakeholder engagement a key enabler. As introducing lifespan extension solutions such as repair services shifts revenue streams from unit sales to lifetime servicing and delays purchase of new products, some stakeholders fear revenue cannibalization. Incentivize internal stakeholders to actively engage in developing and actioning lifespan extension solutions and showcase valid business cases to increase recognition for the emerging growth prospects.A Circular Transformation of Industries: Unlocking Economic Value 16